AMD shares surged over 30% at the start of trading on Monday following the announcement of a multibillion-dollar deal with OpenAI. This partnership positions AMD to compete more aggressively against Nvidia, which recently revealed plans to acquire a stake in Intel.
As part of the agreement, OpenAI will acquire and implement 6 gigawatts of AMD’s AI chips, beginning with a 1-gigawatt deployment set for 2026. AMD has also issued OpenAI a warrant for up to 160 million shares, representing an estimated 10% stake in the company, contingent on reaching specific share-price milestones.
The exact financial value of the deal remains undisclosed, but AMD anticipates that the partnership will generate tens of billions of dollars in revenue. This collaboration is seen as a significant step for AMD in its efforts to reduce Nvidia’s market dominance in AI chips while also helping OpenAI lessen its reliance on Nvidia’s GPUs.
Following the announcement, AMD’s stock rose to approximately $215, marking its largest single-day gain since April 2016. The increase contributed to a broader rally in the tech-heavy Nasdaq, which saw a 0.3% rise, while other tech stocks like Micron and Palantir also experienced gains.
AMD’s stock surge added roughly $241 million to CEO Lisa Su’s net worth, which is now estimated at $1.4 billion. Su has been with AMD since 2012 and became CEO in 2014, achieving billionaire status in 2024.
In a related development, Nvidia recently announced plans to invest $100 billion in OpenAI, allowing the company to deploy at least 10 gigawatts of Nvidia systems for its AI data centers. However, this deal has not yet been finalized, as it is still in the letter of intent stage.
The boost for AMD comes shortly after Nvidia and Intel announced a collaboration to develop custom chips that integrate Intel’s CPUs with Nvidia’s GPUs. This partnership poses a potential challenge to AMD’s market position, as it could enhance Nvidia’s capabilities in AI and graphics-intensive applications.
